When Bitcoin was launched almost a decade ago, nobody could have imagined it would take the world by storm. Breaking all barriers, this virtual currency made its mark in the real world. An indelible one, indeed. It paved the way for a new decentralized future, bringing power back into the hands of the masses in a real sense.
However, Bitcoin isn’t just a currency or a protocol for that matter. Its implications are far more profound — it shines a guiding light onto an innovative model that is fully open and completely distributed, making it an ideal choice for raising capital and ultimately, scaling business.
Tokens leverage the power of the blockchain
Tokens are digital assets that have the potential to completely disrupt how companies function and raise funds. These are limited reserves that function in the manner of application coins, bringing the power of the blockchain to conventional technological paradigms, and in the process, transforming them in terms of transparency, efficiency, and function.
The key to the power of tokens lies in the underlying fact that they can change hands between the trading parties without requiring an intermediation of any third party.
With the soaring popularity of cryptocurrencies, the social acceptance of tokens in general, is on a major rise. Consider, for instance, how countries around the world now have at least one, if not several major cryptocurrency exchanges. Tokens are following the next phase, initiating the change in the technological landscape.
Token Issuance by Tech Companies
Never before has it been easier for tech companies — small firms and large enterprises alike to create their own custom tokens. These assets can be built from the ground up, running on their own blockchains. This is a great way to design the platform to suit a businesses’ highly specific technological and business needs. However, with great customizability comes the challenge of creating a whole new codebase, which requires technical expertise.
It is much easier for companies to leverage the functionality of already established blockchain platforms such as Ethereum or NEM. Another way would be to create custom forks of such blockchain platforms. This greatly simplifies the task, taking the technical burden off the shoulders of businesses, which can focus more on the use cases of their tokens, while also being able to capitalize on the market value of the well-established token platforms.
Token Generalization Through Paid Logins
Tech companies are realizing the power of tokens to raise capital for a start-up just past the concept stage. Even established enterprises are seeking to expand their business endeavors with a tokenization initiative along the lines of a Reverse ICO.
Tokens, more often than not, are integrated with an application platform of an enterprise, enabling users to transact, trade, and benefit from the company’s services. In that respect, tokens generalize the Bitcoin model and expand its reaches to companies worldwide seeking to engage customers on their application platforms in new ways.
There can be several use cases to demonstrate how powerful the token model can be. Ticketing activities could be tokenized, for instance, to provide users with premium login access when plugging in to tech services. It’s not hard to imagine how tokens could disrupt everyday technologies from car-rides to reward-based content platforms.
Content creators on platforms can be rewarded with digital assets based on innovative consensus protocols exploiting proof of creativity. In a similar manner, even hardware could benefit from tokenization models, though specific protocols would need to be developed before they are put to general use.
Digital currency is now bringing a paradigm shift in the technological ecosystem the world over. The key to the power of the blockchain, the underlying technology on which tokens are based, is its transparency and immutability, which assume prime importance in real-world use cases.
Tokens are frequently integrated with mobile-friendly applications, which find their way into day-to-day use. It is important to note that paid logins with regard to token use can function between a tech company and the end user in a bi-directional manner. While users might transact using tokens on one hand, they might also be rewarded with tokens for specific task accomplishments, making this a win-win situation for both.
Businesses can benefit from tokenization routines, expanding their wings to touch new horizons. Established companies can particularly look up to venture into the token space to raise additional capital and successfully engage users while embracing the technology of the future that’s already disrupting the present.
IBC, the premier blockchain consulting company has been guiding organizations on the path to decentralization, enabling them to scale their businesses with the might of the new-age technology.